USE THE FOLLOWING INFORMATION FOR QUESTIONS #16-17:R&R's payroll information for December 20X1 is as follows:Payroll paidBi-MonthlyPayroll Amount$168,000For the period December 15th - December 31stFederal Income Tax Rate13.23%State Income Tax3.78%FICA - Employee's portion7.65%FICA - Employer's portion7.65%FUTA - Employer's0.80%SUTA - Employer's1.10%Pay day for the employees falls on the first Friday in January of the next year.Payroll taxes are due January 15th of the next year.

16. What is the amount of Salaries and Wages Expense that should be recognized when recording the salary expense/associatedEMPLOYEEpayroll taxes on12/31/X1?

[USE THE INFORMATION FROM QUESTION #16]

17. What is the journal entry to record theEMPLOYERpayroll taxes on12/31/X1?

D. Debit FICA Tax Expense for $12,852, Debit FUTA Tax Expense for $1,344, Debit SUTA Tax Expense for $1,848, and Credit Cash for $16,044

A. Debit FICA Tax Expense for $25,704, Debit FUTA Tax Expense for $1,344, Debit SUTA Tax Expense for $1,848, and Credit Payroll Taxes Payable for $28,896

C. Debit FICA Tax Expense for $12,852, Debit FUTA Tax Expense for $1,344, Debit SUTA Tax Expense for $1,848, and Credit Payroll Taxes Payable for $16,044

B. Debit FICA Tax Expense for $25,704, Debit FUTA Tax Expense for $1,344, Debit SUTA Tax Expense for $1,848, and Credit Cash for $28,896